Netflix Wins Over DreamWorks But Loses 1 Million Customers

Netflix has scored a deal with DreamWorks Animation to have exclusive rights to its films and television specials. DreamWorks has produce popular animated flicks such as Madagascar and Shrek. Currently it has a screening agreement with HBO, but has dumped the pay television for web streaming Netflix instead. It’s been reported that this ‘game-changing’ deal is estimated to be worth $30 million per DreamWorks’ film.

Nevertheless, Netflix’s attempt in increasing fees to raise revenue to stream more content has angered several customers. Furthermore, by splitting its service into two different companies has frustrated and confused customers. Nearly 1 million of its 25 million customers in the U.S. have dropped Netflix in this quarter. In addition, the company has lost half of its value (worth $8 billion) in just two months.

A very tough and very strategic call that will ultimately prove to be the right one for long-term success. Could it have been handled better? Absolutely. But there are always bumps when you’re looking around a corner.